How I Went From Broke To Millionaire In 3 Steps | George Kamel x Jaspreet Singh
Published: 2024-03-13
Status:
Available
|
Analyzed
Published: 2024-03-13
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
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The speaker discusses a potential 5-10 step plan for individuals to go from broke to a millionaire within 10 years.
"how can the average person do and let's say five to seven to 10 steps to go from broke to millionaire in 10 years"
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Escaping poverty requires a fundamental change in one's mindset and beliefs about money, not just financial education.
"I think it started with a paradigm shift I don't think you can actually Escape broke until you change mindset your beliefs about money and whether you learn the wrong things about money or you didn't learn anything about money it takes some education but you have to change your mind and go this is not who I am I'm not going to be broke for Life"
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The speaker achieved wealth as a byproduct of paying off debt and consistently investing, contrasting with childhood dreams of becoming rich.
"over time a natural byproduct was wealth did you but as a kid though or growing up did you ever have this like aspiration of I want to be rich one day oh yeah yeah I was very I mean my dad I remember growing up at church and my dad would give me a dollar to go up to people and say things to them in Arabic to try to get them to laugh and once I figured out how to make money I was like this is a life hack cuz at a as a kid money was like this magical object that was hard to obtain except for birthdays and Christmas right and so once you figure out how to make some you go what could this turn into what could this be one day and we all dreamt about being astronauts and rock stars and millionaires but again I never thought it would actually happen in my lifetime"
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Budgeting, living below one's means, and maintaining a savings cushion are presented as the fundamental pillars for building wealth and enabling future investments.
"so budgeting living on less than you make and having that savings cushion that to me is the ultimate Financial Foundation because then you're going to have the margin to invest and do all the things you want to do"
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The US stock market has a long-term upward trend, and the chances of it going to zero are extremely low, making it a comfortable investment vehicle if approached with historical data and facts rather than media headlines.
"you don't have to be a financial Prodigy you can be a 5-year-old and see the line does this and over time it keeps going up and up and up if you just leave it alone we're going to jump back into the show in just a minute but first here's an advertisement from our sponsor me with briefs media if you're looking for an easy way to stay up to date on what's happening in the top finance and business news we make it super easy for you to do that at briefs media because we created a free newsletter called Market briefs Market briefs is a super simple and easy way for you to stay up today on the top finance and business news you can read Market briefs in less than 5 minutes every morning it's a fun and witty and easy to read newsletter and I promise if you join Market briefs you are going to love it now you might say just bre how can you promise that I'm going to love Market briefs well if you don't love Market briefs you can unsubscribe at any time because it's completely free so if you have not joined Market briefs yet and you want to stay up to date on what's happening in the top finance and business news I got the link to hi can join Market briefs down in the description below or you can go to briefs. market that's briefs. market and with that let's go back to the show but are you worried about the markets crashing at all I'm personally not worried um and I I think every every generation has had this fear and every time I go what are your inputs where are you hearing this from well I watched this headline from the media which wants my eyeballs and attention and I heard from my friend that I should pull all of my money out or my my my insurance person said I should be investing in this whole life insurance to because that's the hedge and so I go what are your inputs what are the real facts and the chances of the entire US Stock Market going to zero which is what we're really talking about when you say I'm going to lose all my money in the stock market the chances of that are so abysmally low that I feel very comfortable with people investing in the stock market"
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Key investment mistakes include investing money one cannot afford to lose or investing in assets without understanding them, such as individual stocks or meme stocks. The recommendation is to invest in the S&P 500.
"people will invest money they shouldn't be investing they can't afford to or number two is they're putting their money where they don't understand you're putting your money into to individual stocks that you don't know how to analyze you're putting your money into meme stocks or you put your money into the next Sears that oh gosh right you don't need the entire Market to collapse but you your money go to zero so yeah that's where people get burned is when they jump into single stocks and they try to get fancy with some of these options and margin and I'm like dude just put your money into the S&P 500 the overall stock market the biggest companies in America that we're all rooting for that have a track record of winning and you'll be okay"
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Building wealth requires patience, akin to a slow-cooking crockpot rather than a quick microwave. The 'tortoise' approach of consistent investing, even if seemingly slow, is contrasted with the societal pressure for rapid wealth accumulation.
"my thesis and I I make the analogy of you know we we live in this microwave culture where we have to be crockpots and that's a hard thing to do people look at you like you're crazy when you're the tortoise in a world full of hairs everyone's like dude what are you doing you're going so slow yeah what do you mean you invest in your 401k and you're you're just happy and peaceful with that you know they think I should be doing something fancier and moving faster and Building Wealth at a faster rate"
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Marriage and children can shift financial priorities away from impressing others towards more meaningful aspects of life, leading to a focus on core needs and goals rather than external validation through possessions.
"and what's very humbling is getting married and having a kid that will change your priorities in the best way yeah to where you don't have to what like what are we flexing for you know the only person I care about impressing is my wife at this point and she's not impressed and so it's a very it's so freeing I'm like who cares what kind of car I drive like I drove a Honda a09 Honda Civic the bumper you know half hang falling off the thing Dave Ramsey's making fun of me and I went I have priorities I'm trying to pay off the house then I'll upgrade and car yeah"
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True marital value lies in presence and helpfulness, particularly with family, rather than material possessions. Even significant purchases, like a car, are secondary to these core values and should be made without the intention of impressing others.
"well you know she works at ramsy so we're very aligned with our values which is a beautiful thing a lot of couples that takes a long time just to get on the same page and so what she really values now is how present I am at home how helpful I am with our five-month-old baby girl that's what matters you know it's not what cars we drive we just bought my wife a new to us car it's the nicest car we've ever owned it about hurt my soul to write that check but we're at a place where it's not a big part of our world we're going to pay cash and again it didn't change our life it didn't change who we were and we're not doing it to impress anyone"
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Beyond a certain point, money functions as a tool and cannot independently create character, integrity, or a strong marriage. Many wealthy individuals experience poor relationships and family dynamics.
"the quality of your life has very little to do with money now money problems will be an obstacle to the quality of your life but at a certain threshold money is just a tool and it can't create it can't give you character it can't give you Integrity it can't give you a great marriage and we've see that all the time people that have tons of money get divorced and have terrible marriages and have their kids hate them"
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It is strongly advised against taking on any debt for a wedding, as it is a depreciating expense with no collateral, unlike a mortgage. The speaker was able to pay for a six-figure wedding in cash due to prior budgeting and saving.
"but that wedding there's a whole new business today of people providing loans to Indian parents trying to get their kids married oh wow and and it is very very very very I say bad because I never would recommend anybody in any circumstance to go into debt for any part of their wedding I me this is a second mortgage these are Big Numbers these are huge numbers but the thing is your mortgage at least has some collateral your house you have no there's an asset there there's not a party that disappeared forgot about and so you know we my wife and I had a very nice wedding it was in the six figures um but I was very fortunate that we were able to pay for it with cash and we had already budgeted for it like I started saving for a wedding when I was a lot younger before I had even met my wife"
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Car loans are identified as a major wealth killer in America. This is due to the depreciation of the vehicle while interest accrues, leading to individuals owing more than the car is worth.
"car loans car loans car loans are killing Americans and it's the it's number one video I did on YouTube um and I think it's approaching like a million views now it was called America's number one wealth killer and it was all about the car loan and I broke down um you know how depreciation works and how this actually works when you're paying interest on a something going down in value so that when you you buy a $40,000 car after interest and the length of the loan is over you paid 50 for that so an extra 10 grand in interest well the car is now Worth 16 or 20 grand and I'm like so more and more people almost every person that calls the Ramsey Show lately calls in and they say hey my car is worth 20 I owe 35 I'm underwater on my car"
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Student loans are a significant burden that delays major life events such as marriage and having children, and restricts career and living choices.
"and the stats now show people people aren't getting married they're delaying having kids they can't buy a home they can't work the jobs they want they can't live where they want all because of this burden of student loans that they were unaware would crush their life in adulthood"
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It is possible to finance a college education without debt through strategies like starting at community college, staying in-state, living at home, working part-time, and actively seeking grants and scholarships. Parents diligently saving and children working hard can also contribute to a debt-free education.
"I just find that most people can go well we can go to the Community College and cash flow that for two years knock out our PRX transfer to the four-year School finish there at a reasonable rate maybe we stay in state and maybe we live at home and make some sacrifices or get a part-time job or apply for Grants and scholarships all of that can help you cash flow school and it's not impossible because people call in they tell us their story they're on the debt free stage and parents are telling us how they diligently saved and how their kids work their tails off to get those scholarships and so it's very much possible"
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Parents should teach children that money is earned through work, not received as entitlement. Utilizing commission-based pay for tasks and focusing on 'give, save, and spend' principles from an early age builds a healthy financial foundation.
"and so I think it's a beautiful thing where you go the money is just amoral it can't change you um and so I think seeing it through the lens of you know I'm a steward of this money I want to be a good manager of it I want to use it to be a blessing to my family my community the people around me that just as a much healthier view versus what could I buy with this stuff that could be a flex that could impress people my friends don't care half my friends work here they for sure don't care but what about now if you're in the dating scene if you're trying to find your wife or your girlfriend cuz this is what I hear from a lot of my single friends dude you got to make money if you want to get a girl because then you know no one's going to want to come into a Toyota Camry"
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Many young people are drawn to entrepreneurship due to witnessing their parents' dissatisfaction with traditional employment. However, it's acknowledged that not everyone is suited for entrepreneurship, and a stable W2 job can still lead to significant wealth building.
"well I think a lot of uh teens these days they have that entrepreneurship mindset because they saw their parents work jobs they hated to barely retire and so kids are going wait I can own this I can own my life and have a little more agency and it's a beautiful thing and some kids are cut out for it and some kids are better off working a 9 to5 for someone else and that's okay you can be a W2 employee and still build great wealth"
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The immigrant mindset often instills a stronger work ethic, an appreciation for what one has, and a lack of entitlement, leading to greater gratitude for basic necessities and achievements.
"with the Immigrant mindset there is a you kind of have to work harder than everybody else and you have this understanding that nothing is handed to you and you also have an understanding of what was like when you didn't come from much when you start to have something it means more yeah you know there's not a sense of entitlement you're grateful for that income you're grateful for clean water in some instances you know you're grateful for having a dishwasher"
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The speaker highlights the natural frugality in Middle Eastern culture, including coupon clipping and negotiating prices. This practice is presented as a lost art in American culture, where many prefer to pay full price rather than ask for discounts or negotiate.
"and so I think that's a there's a beauty there and there is a natural frugality at least in Middle Eastern culture I remember cutting up coupons with my dad every Sunday wow and that's how we grocery shopped it was like what do we have coupons for we're going to meal sh we're going to shop based on that and meal prep based on that what's on sale at the grocery store all right hey chickens down to 199 a pound we're doing chicken this week yeah that's how we shopped and then my I also got to see my dad negotiate and so anything that he could negotiate for it became a game and you know that's I now am that guy in my family my wife is like cringing every time I'm negotiating she's like I'm going to go sit in the car you have fun but you know if you do it if you're kind and you're being reasonable and you're not trying to negotiate over the price of banana at the grocery store you know there's certain things you do that for um I think that's a beautiful thing that we've we've lost the art of negotiation and being a kind person um when it comes to those things and I think most of Americans have a lot of Shame when it comes to that they'd rather pay full price and just swipe it on the credit card than be like hey do you have a have a discount if I pay in cash and iy this one's damaged would you be willing to cut that down by 10%"
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A key principle is 'spend to save,' meaning only purchase items when there's a clear benefit or need, not just because of a sale. The best deal is often not buying an item at all.
"spend to save don't spend never spend money to save money yeah you know don't just buy it at J crew because it's a 40% off sale yeah when you didn't really need it but it was a good deal you know everything's a good deal when you don't buy it it's 100% off 100% off when you don't buy it that's the Immigrant mentality right there"
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Reintroducing 'friction' into financial transactions, such as using a debit card, makes it impossible to go into debt and encourages more deliberate spending by making the act of money leaving one's account more palpable.
"and I found that with a debit card it is physically impossible to go into debt even if I wanted to my Banks going to it's going to go you don't have the money for that purchase and I think bringing back friction into a world that has become so comfortable and so instant gratification is a beautiful thing and a mature thing when we go here's the friction you don't have the money right now and you can't see you can't stomach seeing it leave your bank account right now don't make the purchase"
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Instead of allowance, parents should offer commission for specific tasks to teach children that money is earned through work. Additionally, teaching the fundamental concepts of 'give, save, and spend' with money from a young age is crucial for financial literacy.
"so for college that's a great plan but everything else it's teaching your kid that money comes from work at an early age don't give them allowance give them a commission for work they're doing what do you mean by that well you know Dave and Rachel write about this in their book smart money smart kids but Dave learned early on that when you give kids allowance it creates the sense of entitlement of because I exist money shows up ah so allowance is like every week you get a bucks or something ex but commission is when I do XYZ I will get paid this much and this isn't like you're a member of the House you help Mom with the dishes sure but if there's something extra you do hey clean out the attic and I'll give you 20 bucks and so there's easy things you can do that are age appropriate I'm not talking about child labor here you know but as your kid gets older they can understand this and there's what I love to teach kids is there's only three things you can do with money give save and spend a 5-year-old can understand that concept and it's a beautiful thing we have our our Savers bank that you can get for kids and it's a great way to just teach them when you get money we're going to put if you get 10 bucks we're going to put a dollar into the give side we're going to put $5 into the save side for the future and then you get to spend the other $4 and we're going to go get a toy so these are Concepts you can teach kids early on to where you're kind of teaching the kid to fish"
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Working for an organization with a strong mission, like Ramsey Solutions, fosters a sense of family and community, and creates a generational impact by helping individuals achieve financial freedom.
"I believe in this place that much the team is amazing they truly have become my closest friends family my wife literally works here so literally family and uh Dave's mission is there there's a ripple effect that we'll never know that will go generationally because we're meeting people who go oh my parents went through Financial Peace University that's how I was able to go to college debt free that's how I was able to get my first home at 22 and pay it off by 25 and that's how we're able to live XYZ life and give the way and I'm like that's what it's all about it's about Legacy and impact"
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Seizing every opportunity, performing tasks with excellence and faithfulness, regardless of their perceived importance, leads to increased responsibility and recognition within a company. A shift in attitude, mindset, and adopting a posture of service and humility can significantly advance one's career.
"and so my journey was that of seizing every single opportunity um trying to be as excellent as possible being faithful in whatever was in front of me no matter how menial of a task I thought it was and that over time they gave me more rope and people notice so if that's you out there and you're feeling frustrated with your career trajectory and like yes you might need a career change sure it might be a toxic employer absolutely but a lot of the times you need to change your attitude and your mindset and have an attitude of of service and that posture of humility and I've seen that go a long way and uh you know I I've been here 11 years I'm looking forward to the next 11"
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The speaker aims to carry forward the message of financial freedom to younger generations through his book, 'Breaking Free from Broke,' which is seen as a modern adaptation of 'The Total Money Makeover' for Millennials and Gen Z.
"and so it's an honor to help take that torch and carry this message to new generations and that's what I try to do with my book Breaking Free from broke people are saying this is Total Money Makeover for 2024 for Millennials and gen Z and so it's been an honor to even attempt to step in the shoes of Dave and all of us personalities we couldn't fill Dave shoes um but we're doing our best to help people every day"
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The guest outlines a 5-7-10 step plan for individuals to become millionaires within 10 years, starting from being broke.
"How did you go from broke to millionaire in 10 years and what can the average person do and let's say five to seven to 10 steps to go from broke to millionaire in 10 years?"
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Key steps to building wealth include creating a written budget, eliminating debt using methods like the debt snowball, and establishing a savings cushion.
"The first thing I tell people is to make a written budget and we have an app called every dollar that makes this really easy you type in your income you type in all of your expenses and that will show you exactly if you're going to be in the red every month or if you have money left that you can be throwing at your debt and so the budget is the foundation that the baby step sits on and once you're budgeting that's when we go we got to get away from debt debt is stealing from our income it's a thief taken from our paycheck and our margin and our options and the other thing is having savings"
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The long-term track record of the US stock market shows consistent upward movement if investments are left untouched.
"And over time it keeps going up and up and up if you just leave it alone"
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Common investment mistakes include investing money that cannot be afforded or investing in assets that are not understood, such as individual stocks or meme stocks.
"Mistakes that people make... number one people will invest money they shouldn't be investing... or number two is they're putting their money where they don't understand you're putting your money into to individual stocks that you don't know how to analyze you're putting your money into meme stocks or you put your money into the next Sears"
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A recommended investment strategy involves putting money into the S&P 500 or diversified mutual funds, including growth, growth and income, aggressive growth, and international funds.
"just put your money into the S&P 500 the overall stock market the biggest companies in America that we're all rooting for that have a track record of winning and you'll be okay and so that's what I do personally with my 401k it's diversifi across four types of Mutual Funds growth growth in income aggressive growth and international"
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Building wealth requires patience, contrasting with the modern 'microwave culture' by advocating for a 'crockpot' approach.
"wealth is patience that's my thesis and I I make the analogy of you know we we live in this microwave culture where we have to be crockpots and that's a hard thing to do"
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Young individuals often feel pressured to build wealth rapidly without a clear understanding of their goals, driven by a fear that time is running out.
"we have 19-year-olds that call into the show and they go how do I make how do I turn my $100,000 into a million in five years and I go what's your goal with that I don't know I just feel like I need I should be Building Wealth faster because there's this just stress that I time is running out for me to build wealth"
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Many individuals emulate extravagant lifestyles without considering if they can genuinely afford them, a lesson learned from the desire for a $130,000 BMW i8.
"a lot of people missed the broader picture there where first off are they actually affording that because that was something I learned the hard way because when I was younger I dreamed of having a BMW I8 which you know when it was on the market was probably $130,000 off the lot which is expensive"
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The desire for an expensive item decreases once it becomes affordable, leading to the realization that purchasing it might not be financially prudent due to the needs of wealth growth.
"my want for that car went way down here like when I couldn't afford it my want was way up here when I could afford it it went way down here and I was like wait I can afford it but I really don't think I should buy it I really don't think I can actually afford it because my wealth needs more money right now"
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The current era allows young individuals to potentially earn significant wealth through online platforms, but this is often countered by rapid lifestyle inflation.
"there's this this chasing of wealth and in no other time in history have we seen where a 19-year-old can just go make a million dollars 10 20 years ago that didn't exist now we're seeing people all over with content creators and YouTubers and all kinds of you know this entrepreneurship push people can make a lot of money but they can also spend a lot of money and that's what we're seeing is lifestyle creep happens"
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Focusing on impressing only a spouse, rather than external validation, leads to financial freedom and reduces the importance of material possessions like cars.
"the only person I care about impressing is my wife at this point and she's not impressed and so it's a very it's so freeing I'm like who cares what kind of car I drive"
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True value in a relationship often lies in presence and helpfulness, rather than material possessions or financial success.
"what she really values now is how present I am at home how helpful I am with our five-month-old baby girl that's what matters you know it's not what cars we drive"
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Car loans are identified as America's number one wealth killer, significantly hindering financial progress.
"number one right now in my mind as we take calls is car loans car loans car loans are killing Americans and it's the it's number one video I did on YouTube um and I think it's approaching like a million views now it was called America's number one wealth killer and it was all about the car loan"
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A common financial pitfall is being 'underwater' on car loans, where the car's value is significantly less than the amount owed.
"the car is now Worth 16 or 20 grand and I'm like so more and more people almost every person that calls the Ramsey Show lately calls in and they say hey my car is worth 20 I owe 35 I'm underwater on my car"
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Excessive car payments deplete retirement savings, and the widespread use of loans artificially inflates car prices; a shift to cash purchases would likely cause prices to drop.
"most people are driving their retirement accounts with the amount of car they're buying and just like college tuition guess what happens car prices go up people still buy them because of loans if we had to only buy cars with cash car prices would plummet"
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Americans are accumulating debt through student loans, credit card balances exacerbated by inflation, and personal loans, including HELOCs, due to escalating expenses.
"they are hanging on to student loans uh for 10 20 years hoping for government forgiveness they are have credit card balances because life got it crazy inflation everything's expensive so how do they keep up their life swiping the card so now they're carrying a credit card balance and now they're turning to personal loans we've seen a record number of helocs"
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It is acceptable to spend on desired items only after achieving financial stability, characterized by no consumer debt, a fully funded emergency fund, and consistent investing for the future.
"splurging should happen once you have no Consumer Debt a fully funded emergency fund you're investing for the future and then you have this extra money you can enjoy so when you can afford it it is okay to go out and buy the nice things"
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Student loans are considered a form of debt that is not 'good' and can hinder financial progress, despite being controversial in financial discussions.
"I have this crazy belief that there's no such thing as good debt which I understand this is very controversial in our financial world and that includes student loans"
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Student loan debt is shown to delay major life milestones such as marriage, having children, and homeownership, and restricts career and living choices.
"the stats now show people people aren't getting married they're delaying having kids they can't buy a home they can't work the jobs they want they can't live where they want all because of this burden of student loans"
Pending
Students can avoid student loan debt by utilizing community colleges, staying in-state, living at home, working part-time, and applying for grants and scholarships to cash flow their education.
"most people can go well we can go to the Community College and cash flow that for two years knock out our PRX transfer to the four-year School finish there at a reasonable rate maybe we stay in state and maybe we live at home and make some sacrifices or get a part-time job or apply for Grants and scholarships all of that can help you cash flow school"
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Parents can best set up their children for success by establishing trust funds or investment accounts for them.
"the best thing a parent can do to set their kids up for success is it set up a trust fund for them give them money to get set up a you know a investment account for them"
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A 529 plan or education savings account is a recommended, tax-advantaged tool for saving for college expenses, with potential rollovers to a Roth IRA.
"number one for college I love a 529 plan or an education savings account that's a great way tax advantage the money's going to grow you know tax deferred you can withdraw it taxfree for Education expenses and now you can even roll over a portion of that money to a Roth IRA"
Pending
Instead of giving allowances, parents should teach children that money is earned through work by providing commissions for tasks performed.
"teach kids that money comes from work at an early age don't give them allowance give them a commission for work they're doing"
Pending
Children as young as five can grasp the fundamental financial concepts of giving, saving, and spending.
"there's only three things you can do with money give save and spend a 5-year-old can understand that concept and it's a beautiful thing"
Pending
Younger generations often aspire to entrepreneurship for greater control and agency, but working a traditional 9-to-5 job can also lead to significant wealth accumulation.
"kids are going wait I can own this I can own my life and have a little more agency and it's a beautiful thing and some kids are cut out for it and some kids are better off working a 9 to5 for someone else and that's okay you can be a W2 employee and still build great wealth"
Pending
A lemonade stand can serve as a practical introduction to business concepts like profit and loss for children.
"having the lemonade stand is such a great little p&l opportunity to go all right son the lemonade cost you $5 you got to make at least that to break even and if you make $10 here's much profit you can make after all of your expenses"
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The immigrant mindset emphasizes hard work, the understanding that nothing is given, and a deep appreciation for achievements, especially when starting from humble beginnings.
"with the Immigrant mindset there is a you kind of have to work harder than everybody else and you have this understanding that nothing is handed to you and you also have an understanding of what was like when you didn't come from much when you start to have something it means more"
Pending
A natural frugality, exemplified by coupon clipping and shopping based on sales, is prevalent in Middle Eastern culture, leading to strategic meal planning.
"there is a natural frugality at least in Middle Eastern culture I remember cutting up coupons with my dad every Sunday wow and that's how we grocery shopped it was like what do we have coupons for we're going to meal sh we're going to shop based on that and meal prep based on that"
Pending
The art of negotiation, when approached with kindness and reasonableness, is a valuable skill that appears to be diminishing, but can be a source of savings and a 'game' for some.
"I also got to see my dad negotiate and so anything that he could negotiate for it became a game and that's I now am that guy in my family my wife is like cringing every time I'm negotiating she's like I'm going to go sit in the car you have fun but you know if you do it if you're kind and you're being reasonable and you're not trying to negotiate over the price of banana at the grocery store you know there's certain things you do that for um I think that's a beautiful thing that we've we've lost the art of negotiation"
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Many Americans feel shame about negotiating for discounts, preferring to pay full price with credit cards rather than asking for cash discounts or reductions for damaged items.
"most Americans have a lot of Shame when it comes to that they'd rather pay full price and just swipe it on the credit card than be like hey do you have a have a discount if I pay in cash and iy this one's damaged would you be willing to cut that down by 10%"
Pending
The principle of 'spend to save' should be applied cautiously, emphasizing that buying items solely because they are on sale, even if not needed, is not a true saving.
"spend to save don't spend never spend money to save money yeah you know don't just buy it at J crew because it's a 40% off sale yeah when you didn't really need it but it was a good deal"
Pending
Having things be harder to obtain can be a positive factor, as challenges and 'friction' prevent complacency, laziness, and a lack of drive that can arise from excessive ease.
"things were harder to come by is that a good thing or bad thing for you because in today's culture I think there's a lot of victimization of dude is harder for me you don't get how hard it is is that a good thing or bad thing and why I think we need we need that friction when things are just easy we start to live comfortable lives we start to get a little fat a little lazy a little complacent less driven"
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A common phrase among immigrant mothers is 'we have food at home,' indicating a preference for home-cooked meals over dining out.
"we have food at home right that's the every immigrant Mom that's that was her go-to line we got food at home I can make a better at home"
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Career advancement, including pay raises, bonuses, and promotions, is often achieved by individuals willing to perform any task, including menial ones, demonstrating commitment to the company's mission.
"the difference and we'll talk about any company now between somebody maybe you tell me what you think that goes up and grows in the company gets the pay raise gets the bonuses gets the promotions is the person that's willing to scrub the toilets when they're doing something else it's because they care about the company Mission"
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Job hopping and unrealistic expectations of constant positivity and high pay contribute to career stagnation; a commitment of over six months and a strong work ethic are crucial.
"you got to hustle like you got to commit to something for more than 6 months and I think too many people are their job hopping and they think that every day at work should just be rainbows and sunshine and we should just get to hang out and everyone should just get a wonderful ble big paycheck"
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A diligent work ethic, characterized by intense effort and dedication, is essential for achieving significant results.
"you got to bust something you got to kill it and drag it home as Dave would say"
Pending
Career frustration may stem from attitude and mindset rather than external factors like a toxic employer; adopting an attitude of service and humility can be transformative.
"if you're feeling frustrated with your career trajectory and like yes you might need a career change sure it might be a toxic employer absolutely but a lot of the times you need to change your attitude and your mindset and have an attitude of of service and that posture of humility"
Pending
Dave Ramsey's mission has a generational ripple effect, as individuals whose parents participated in Financial Peace University have achieved financial milestones like debt-free college and early homeownership.
"Dave's mission is there there's a ripple effect that we'll never know that will go generationally because we're meeting people who go oh my parents went through Financial Peace University that's how I was able to go to college debt free that's how I was able to get my first home at 22 and pay it off by 25"
Pending
The absence of financial education in schools leads people to hold onto money inefficiently, while a better strategy might involve borrowing tax-free and investing to generate more income.
"there's no Financial education in schools cuz if you knew how to handle debt you wouldn't save that crappy dollar you have in your hand I'd rather I'd rather borrow the money taxfree and then do what with it I have to invest it to make more money"
Pending
The speaker poses a question about how an average person can go from being broke to a millionaire in 5-7 to 10 years, implying this is a plausible goal.
"how do I go from broke to millionaire in 10 years"
Pending
The guest outlines a path to becoming a millionaire in 10 years, suggesting a 5-7 step process for the average person to achieve this.
"how did you go from broke to millionaire in 10 years and what can the average person do and let's say five to seven to 10 steps to go from broke to millionaire in 10 years"
Pending
The speaker paid off $40,000 in consumer and student loan debt within 18 months through side hustles and living below their means.
"in 18 months I paid off my $40,000 in Consumer Debt the student loans the credit card debt I knocked it out with side hustles and living on less than I made and sacrifices"
Pending
The speaker emphasizes that escaping poverty requires a fundamental shift in one's beliefs and mindset about money, along with acquiring financial education.
"I think it started with a paradigm shift I don't think you can actually Escape broke until you change mindset your beliefs about money and whether you learn the wrong things about money or you didn't learn anything about money it takes some education but you have to change your mind and go this is not who I am I'm not going to be broke for Life"
Pending
Investing 15% into a 401k is presented as a method that naturally leads to wealth accumulation over time.
"it was I want to invest 15% into my 401k and so over time a natural byproduct was wealth"
Pending
The guest details a strategy for paying off $40,000 in debt within 18 months through side hustles, living below their means, and implementing Dave Ramsey's baby steps, starting with a $1,000 emergency fund.
"Dave's baby steps $1,000 starter emergency fund tackle all of your debts using the debt snowball get a full emergency fund in place begin investing and so that's what I did in 18 months I paid off my $40,000 in Consumer Debt the student loans the credit card debt I knocked it out with side hustles and living on less than I made and sacrifices"
Pending
Budgeting, living below one's means, and maintaining a savings cushion are identified as the fundamental pillars for financial success, enabling future investment.
"budgeting living on less than you make and having that savings cushion that to me is the ultimate Financial Foundation because then you're going to have the margin to invest and do all the things you want to do"
Pending
After building an emergency fund, the speaker focused on investing 15% into their 401k, which led to wealth accumulation over time.
"it was I want to build an emergency fund and then it was I want to invest 15% into my 401k and so over time a natural byproduct was wealth"
Pending
The speaker believes that the long-term historical performance of the US stock market shows consistent upward trends, making it a comfortable investment despite fears of crashes, as the probability of the entire market going to zero is extremely low.
"if you just leave it alone we're going to jump back into the show in just a minute but first here's an advertisement from our sponsor me with briefs media if you're looking for an easy way to stay up to date on what's happening in the top finance and business news we make it super easy for you to do that at briefs media because we created a free newsletter called Market briefs Market briefs is a super simple and easy way for you to stay up today on the top finance and business news you can read Market briefs in less than 5 minutes every morning it's a fun and witty and easy to read newsletter and I promise if you join Market briefs you are going to love it now you might say just bre how can you promise that I'm going to love Market briefs well if you don't love Market briefs you can unsubscribe at any time because it's completely free so if you have not joined Market briefs yet and you want to stay up to date on what's happening in the top finance and business news I got the link to hi can join Market briefs down in the description below or you can go to briefs. market that's briefs. market and with that let's go back to the show but are you worried about the markets crashing at all I'm personally not worried um and I I think every every generation has had this fear and every time I go what are your inputs where are you hearing this from well I watched this headline from the media which wants my eyeballs and attention and I heard from my friend that I should pull all of my money out or my my my insurance person said I should be investing in this whole life insurance to because that's the Hedge and so I go what are your inputs what are the real facts and the chances of the entire US Stock Market going to zero which is what we're really talking about when you say I'm going to lose all my money in the stock market the chances of that are so abysmally low that I feel very comfortable with people investing in the stock market"
Pending
Key mistakes in investing include using unaffordable funds or investing in assets that are not understood, such as individual stocks or meme stocks, which can lead to total loss even without a market collapse.
"people will invest money they shouldn't be investing they can't afford to or number two is they're putting their money where they don't understand you're putting your money into to individual stocks that you don't know how to analyze you're putting your money into meme stocks or you put your money into the next Sears that oh gosh right you don't need the entire Market to collapse but you your money go to zero"
Pending
The speaker identifies budgeting, living below one's means, and maintaining a savings cushion as the fundamental pillars of financial health, enabling future investing.
"budgeting living on less than you make and having that savings cushion that to me is the ultimate Financial Foundation because then you're going to have the margin to invest and do all the things you want to do"
Pending
A diversified investment portfolio including growth, growth and income, aggressive growth, and international mutual funds is suggested as a way to mitigate significant dips in investment value.
"it's diversifi across four types of Mutual Funds growth growth in income aggressive growth and international it's that simple if you're well Diversified and you have you know International is a little hedge it's hard to even look at a period of time where your your Investment Portfolio is taking a huge dip"
Pending
The long-term historical performance of the US stock market is presented as encouraging, suggesting that a simple, hands-off approach leads to consistent growth.
"when you look at the long-term track record of the you know American economy and the US Stock Market it's very encouraging to me you don't have to be a financial Prodigy you can be a 5-year-old and see the line does this and over time it keeps going up and up and up if you just leave it alone"
Pending
Common investing mistakes include investing money one cannot afford to lose or investing in individual stocks or meme stocks without proper understanding or analysis.
"people will invest money they shouldn't be investing they can't afford to or number two is they're putting their money where they don't understand you're putting your money into to individual stocks that you don't know how to analyze you're putting your money into meme stocks or you put your money into the next Sears"
Pending
Wealth building is fundamentally about patience, contrasting with the modern desire for instant gratification.
"wealth is patience"
Pending
A recommendation is made to invest in the S&P 500 or diversified mutual funds (growth, growth and income, aggressive growth, international) for long-term success.
"dude just put your money into the S&P 500 the overall stock market the biggest companies in America that we're all rooting for that have a track record of winning and you'll be okay and so that's what I do personally with my 401k it's diversifi across four types of Mutual Funds growth growth in income aggressive growth and international"
Pending
Taking on debt for a wedding is seen as illogical. While Indian weddings can be very expensive, the ability to pay for one's own wedding is presented as a significant accomplishment.
"if you don't have the money going into debt for a wedding boggles my mind it's very interesting you bring that up because the Indian wedding business is a very very lucrative business I'm saying this from experience because I used to work at that industry yeah it is very common for Indians to spend six figures or multi six figures for their wedding and as a guy one of the most impressive things that you can do is say I'm going to pay for my wedding"
Pending
The core principle of wealth building is patience, contrasting the modern 'microwave culture' with a 'crockpot' approach, akin to a tortoise in a race.
"wealth is patience that's my thesis and I I make the analogy of you know we we live in this microwave culture where we have to be crockpots and that's a hard thing to do people look at you like you're crazy when you're the tortoise in a world full of hairs"
Pending
There is a strong recommendation against taking on any debt for a wedding, regardless of circumstance.
"I never would recommend anybody in any circumstance to go into debt for any part of their wedding"
Pending
The desire for expensive items, like a BMW i8, diminishes significantly once one can comfortably afford them, suggesting that true financial responsibility prioritizes wealth over immediate gratification.
"because that was something I learned the hard way because when I was younger I dreamed of having a BMW I8 which you know when it was on the market was probably $130,000 off the lot which is expensive yeah and I would see these guys talking about oh dude I'm making six figures a year look at me I got this BMW I8 and then I was like dude that's a lot that's so cool and then when I got to the point where I could comfortably afford the BMW i8 and not have to worry about the price my want for that car went way down"
Pending
Car loans are identified as a major impediment to wealth building in America, due to interest payments on assets that rapidly depreciate in value.
"car loans are killing Americans and it's the it's number one video I did on YouTube um and I think it's approaching like a million views now it was called America's number one wealth killer and it was all about the car loan and I broke down um you know how depreciation works and how this actually works when you're paying interest on a something going down in value"
Pending
Lifestyle creep is identified as a common issue, but marriage and children can positively shift priorities, reducing the focus on material possessions.
"and that's what we're seeing is lifestyle creep happens and what's very humbling is getting married and having a kid that will change your priorities in the best way"
Pending
A couple leveraged three vehicles on loans for a Turo side hustle, resulting in all three being 'underwater' (owing more than they are worth).
"this couple called in and said hey we've we decided to try to do turo as a side hustle Where We Rent Out Cars for everyday people to rent through the app well they leveraged three vehicles on loans that are now all three underwater"
Pending
True value in relationships and life stems from presence and helpfulness, not material possessions like cars, even when a significant purchase is made.
"what she really values now is how present I am at home how helpful I am with our five-month-old baby girl that's what matters you know it's not what cars we drive we just bought my wife a new to us car it's the nicest car we've ever owned it about hurt my soul to write that check but we're at a place where it's not a big part of our world"
Pending
Student loan debt is cited as a significant burden that delays major life milestones such as marriage, having children, homeownership, and career choices.
"people aren't getting married they're delaying having kids they can't buy a home they can't work the jobs they want they can't live where they want all because of this burden of student loans that they were unaware would crush their life in adulthood"
Pending
A 529 plan or an education savings account is recommended as a tax-advantaged method for saving for college, with potential to roll over funds to a Roth IRA.
"I love a 529 plan or an education savings account that's a great way tax advantage the money's going to grow you know tax deferred you can withdraw it taxfree for Education expenses and now you can even roll over a portion of that money to a Roth IRA"
Pending
Car loans are identified as a primary destroyer of American wealth due to interest payments on depreciating assets, with a $40,000 car costing an extra $10,000 in interest over the loan term.
"car loans car loans car loans are killing Americans and it's the it's number one video I did on YouTube um and I think it's approaching like a million views now it was called America's number one wealth killer and it was all about the car loan and I broke down um you know how depreciation works and how this actually works when you're paying interest on a something going down in value"
Pending
The phenomenon of being 'underwater' on car loans, where the amount owed exceeds the car's value, is highlighted as a significant financial pitfall.
"the car is worth 20 they owe 35 the car is worth 30 they owe 45 oh my God and they're underwater and all three and they're like how do we get out of this"
Pending
Parents can best set up their children for success by establishing trust funds or investment accounts for them.
"the best thing a parent can do to set their kids up for success is it set up a trust fund for them give them money to get set up a you know a investment account for them"
Pending
Instead of allowances, parents should provide commissions for work done by children to instill a sense of earning and avoid entitlement.
"give them a commission for work they're doing what do you mean by that well you know Dave and Rachel write about this in their book smart money smart kids but Dave learned early on that when you give kids allowance it creates the sense of entitlement of because I exist money shows up ah so allowance is like every week you get a bucks or something ex but commission is when I do XYZ I will get paid this much"
Pending
Individuals are increasingly resorting to credit card balances, personal loans, and HELOCs to fund renovations, vacations, and college expenses due to economic pressures and rising costs.
"they are have credit card balances because life got it crazy inflation everything's expensive so how do they keep up their life swiping the card so now they're carrying a credit card balance and now they're turning to personal loans we've seen a record number of helocs as people had their home value appreciate with this housing market they're like sweet we have an extra 100 Grand on our home let's use that as a line of credit and go fund the renovation and the vacation and the kids college"
Pending
Splurging is deemed acceptable and appropriate only after achieving debt freedom, establishing a fully funded emergency fund, and consistently investing for the future.
"splurging should happen once you have no Consumer Debt a fully funded emergency fund you're investing for the future and then you have this extra money you can enjoy so when you can afford it it is okay to go out and buy the nice things"
Pending
Children can be taught basic money management by dividing any income into three categories: give, save, and spend, using a savings bank as a tool.
"there's only three things you can do with money give save and spend a 5-year-old can understand that concept and it's a beautiful thing we have our our Savers bank that you can get for kids and it's a great way to just teach them when you get money we're going to put if you get 10 bucks we're going to put a dollar into the give side we're going to put $5 into the save side for the future and then you get to spend the other $4"
Pending
Many teenagers today are developing an entrepreneurial mindset, driven by witnessing their parents' dissatisfaction with traditional jobs and a desire for more control over their lives.
"a lot of teens these days they have that entrepreneurship mindset because they saw their parents work jobs they hated to barely retire and so kids are going wait I can own this I can own my life and have a little more agency and it's a beautiful thing"
Pending
The speaker holds a strong conviction that 'good debt' does not exist, explicitly including student loans within this category, a view acknowledged as controversial.
"I have this crazy belief that there's no such thing as good debt which I understand this is very controversial in our financial world and that includes student loans"
Pending
The immigrant mindset often involves a stronger work ethic, an appreciation for what one has, and a lack of entitlement, stemming from past experiences of scarcity.
"with the Immigrant mindset there is a you kind of have to work harder than everybody else and you have this understanding that nothing is handed to you and you also have an understanding of what was like when you didn't come from much when you start to have something it means more you know there's not a sense of entitlement you're grateful for that income you're grateful for clean water"
Pending
Student loan debt is cited as a significant impediment to major life milestones such as marriage, having children, homeownership, and career choices, impacting adulthood profoundly.
"people aren't getting married they're delaying having kids they can't buy a home they can't work the jobs they want they can't live where they want all because of this burden of student loans that they were unaware would crush their life in adulthood"
Pending
The art of negotiation and kindness in transactions has been lost, with many Americans preferring to pay full price rather than asking for discounts or mentioning minor damages.
"I think that's a beautiful thing that we've we've lost the art of negotiation and being a kind person um when it comes to those things and I think most of Americans have a lot of Shame when it comes to that they'd rather pay full price and just swipe it on the credit card than be like hey do you have a have a discount if I pay in cash and iy this one's damaged would you be willing to cut that down by 10%"
Pending
Introducing friction into financial transactions, such as making it difficult to spend money you don't have, is a mature and beneficial approach in an era of instant gratification.
"bringing back friction into a world that has become so comfortable and so instant gratification is a beautiful thing and a mature thing when we go here's the friction you don't have the money right now and you can't see you can't stomach seeing it leave your bank account right now don't make the purchase"
Pending
Alternative strategies for funding college include starting at community college, staying in-state, living at home, working part-time, and actively seeking grants and scholarships to avoid student loan debt.
"we can go to the Community College and cash flow that for two years knock out our PRX transfer to the four-year School finish there at a reasonable rate maybe we stay in state and maybe we live at home and make some sacrifices or get a part-time job or apply for Grants and scholarships all of that can help you cash flow school"
Pending
Individuals willing to take on any task, even menial ones, to support a company's mission, are more likely to grow and succeed within that organization.
"the person that's willing to scrub the toilets when they're doing something else it's because they care about the company Mission and most people don't want to do that"
Pending
Parents should proactively plan and save for their children's college education using tools like 529 plans or education savings accounts, rather than expecting children to figure it out independently, which can lead to student loan debt.
"don't just not plan when you have the abil to save and go well I want them to work for it and they'll figure it out that's a bad plan that's probably going to end up with them and student loan debt so number one for college I love a 529 plan or an education savings account"
Pending
Job hopping and expecting constant positive experiences at work are detrimental; a commitment of longer than six months and a strong work ethic are necessary for career advancement.
"you got to commit to something for more than 6 months and I think too many people are their job hopping and they think that every day at work should just be rainbows and sunshine and we should just get to hang out and everyone should just get a wonderful ble big paycheck like you got to bust something you got to kill it and drag it home as Dave would say"
Pending
Instead of providing an allowance, parents should offer commissions for work completed by children, teaching them the direct correlation between effort and reward, thereby avoiding entitlement.
"give them a commission for work they're doing what do you mean by that well you know Dave and Rachel write about this in their book smart money smart kids but Dave learned early on that when you give kids allowance it creates the sense of entitlement of because I exist money shows up ah so allowance is like every week you get a bucks or something ex but commission is when I do XYZ I will get paid this much"
Pending
Changing one's attitude, mindset, and adopting a posture of service and humility are crucial for career and financial success.
"a lot of the times you need to change your attitude and your mindset and have an attitude of of service and that posture of humility"
Pending
The immigrant mindset fosters a stronger work ethic, an appreciation for what one has, and a lack of entitlement, stemming from the understanding of hardship and scarcity.
"with the Immigrant mindset there is a you kind of have to work harder than everybody else and you have this understanding that nothing is handed to you and you also have an understanding of what was like when you didn't come from much when you start to have something it means more you know there's not a sense of entitlement you're grateful for that income"
Pending
The core mission of the Ramsey Show is about legacy and impact, and the speaker feels honored to contribute to this by hosting alongside Dave Ramsey, highlighting the importance of the message being shared.
"it's about Legacy and impact and so getting to now host the show next to Dave I'll forget I'm inside of the Ramsey Show because I'll be listening to a Dave rant with you know with my ears on I'm going this is good stuff and then Dave will be like what do you think George I'm like oh gosh I'm in the show"
Pending
The art of negotiation, when approached with kindness and reasonableness, is a valuable skill that has been lost in modern culture, where many prefer to pay full price out of discomfort.
"I also got to see my dad negotiate and so anything that he could negotiate for it became a game and that's I now am that guy in my family my wife is like cringing every time I'm negotiating she's like I'm going to go sit in the car you have fun but you know if you do it if you're kind and you're being reasonable and you're not trying to negotiate over the price of banana at the grocery store you know there's certain things you do that for um I think that's a beautiful thing that we've we've lost the art of negotiation and being a kind person"
Pending
The absence of financial education in schools is seen as a barrier, as knowing how to manage debt could lead individuals to question saving small amounts and instead consider borrowing tax-free to invest and generate more income.
"that's why there's no Financial education in schools cuz if you knew how to handle debt you wouldn't save that crappy dollar you have in your hand I'd rather I'd rather borrow the money taxfree and then do what with it I have to invest it to make more money"
Pending
Working at a company with a strong mission, like Ramsey Solutions, fosters a sense of family and allows for a generational impact through helping people achieve financial freedom.
"I believe in this place that much the team is amazing they truly have become my closest friends family my wife literally works here so literally family and Dave's mission is there there's a ripple effect that we'll never know that will go generationally because we're meeting people who go oh my parents went through Financial Peace University"
Pending
Company growth and advancement are often tied to employees who are willing to take on any task, including menial ones, demonstrating commitment to the company's mission.
"the difference and we'll talk about any company now between somebody maybe you tell me what you think that goes up and grows in the company gets the pay raise gets the bonuses gets the promotions is the person that's willing to scrub the toilets when they're doing something else it's because they care about the company Mission and most people don't want to do that"
Pending
The speaker anticipates a long future with Ramsey Solutions, projecting Dave Ramsey to continue his radio presence at 85, and expresses a commitment to carrying the financial message to future generations.
"I've been here 11 years I'm looking forward to the next 11 and I think Dave's still going to be here at 85 years old on the radio and he said until he doesn't make sense anymore he's going to be in front of that mic and so it's an honor to help take that torch and carry this message to new generations"
Pending
The book 'Breaking Free From Broke' is presented as a modern equivalent to 'The Total Money Makeover' for Millennials and Gen Z, and the author can be found on YouTube at George camel.
"and so it's an honor to even attempt to step in the shoes of Dave and all of us personalities we couldn't fill Dave shoes but we're doing our best to help people every day well dude that was a lot of powerful stuff man I appr appreciate your time where can people learn more about you where can they get Breaking Free from broke and how can they learn more about what you're doing absolutely well you can follow me at George camel with a K on YouTube"
Pending
The absence of financial education in schools is lamented, as knowing how to manage debt would change people's perspective on saving and encourage borrowing for investment rather than hoarding small amounts.
"that's why there's no Financial education in schools cuz if you knew how to handle debt you wouldn't save that crappy dollar you have in your hand I'd rather I'd rather borrow the money taxfree and then do what with it I have to invest it to make more money"
Pending